Aug 5, 07:00 AM

Diageo Lifts Savings Goal to $625 Million as Tariffs Hit Outlook

Diageo Plc met analysts’ expectations for its 2025 fiscal year, reporting net sales of $20.2 billion and organic revenue growth of 1.7 %. The performance, delivered after a period marked by demand weakness and the abrupt departure of former chief executive Debra Crew, helped steady investor sentiment toward the world’s largest spirits producer. The London-listed company raised the three-year cost-savings target under its efficiency programme to $625 million, an increase of $125 million, as it braces for higher trade-war costs. Management said tariffs will shave about $200 million from annual earnings, up from an earlier $150 million estimate. For the year that ends in June 2026, Diageo projects organic net-sales growth roughly matching the prior year and mid-single-digit organic operating-profit growth. Capital expenditure is seen at $1.28 billion to $1.38 billion, with free cash flow expected to cover dividend commitments and debt reduction. Interim Chief Executive Officer Nik Jhangiani told analysts the board aims to appoint a permanent CEO by the end of October. Investors welcomed the guidance and cost-cut drive; Diageo shares rose more than 6 % in early London trading, trimming some of the stock’s roughly 30 % decline since January.

#Diageo #Debra Crew #Nik Jhangiani #London

Written with ChatGPT .

Diageo Lifts Savings Goal to $625 Million as Tariffs Hit Outlook

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